Insiders Of Croma Security Solutions Group Reap Rewards After Their Investment Jumps Another UK£52k

Croma Security Solutions Group plc (LON:CSSG) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 12% resulting in a UK£1.2m addition to the company’s market value. In other words, the original UK£389.4k purchase is now worth UK£441.3k.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

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Croma Security Solutions Group Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when CEO & Interim Executive Chair Roberto Fiorentino bought UK£332k worth of shares at a price of UK£0.68 per share. Even though the purchase was made at a significantly lower price than the recent price (UK£0.79), we still think insider buying is a positive. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

Happily, we note that in the last year insiders paid UK£389k for 562.13k shares. On the other hand they divested 552.13k shares, for UK£381k. In total, Croma Security Solutions Group insiders bought more than they sold over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

See our latest analysis for Croma Security Solutions Group

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership Of Croma Security Solutions Group

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. It's great to see that Croma Security Solutions Group insiders own 43% of the company, worth about UK£4.7m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Croma Security Solutions Group Tell Us?

It doesn't really mean much that no insider has traded Croma Security Solutions Group shares in the last quarter. However, our analysis of transactions over the last year is heartening. With high insider ownership and encouraging transactions, it seems like Croma Security Solutions Group insiders think the business has merit. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. When we did our research, we found 4 warning signs for Croma Security Solutions Group (1 is a bit concerning!) that we believe deserve your full attention.

Of course Croma Security Solutions Group may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.